SSP delivers tasty rise in Q1 like-for-like sales

Branded travel catering group SSP on Tuesday said first quarter total revenue rose 13.5% on a constant currency basis, with like-for-like sales growth of 2.7%.

SSP added that net contract gains were up 8.1% with the acquisition of TFS, its Indian joint venture, adding a further 2.7% to sales. Total group revenue growth at actual exchange rates was 12.2%.

The company, which operates concession retail units at airports and train stations, said like-for-like sales growth in the UK and continental Europe was in line with expectations, driven by the ongoing roll out of strategic initiatives and increasing passenger numbers.

North America sales were driven by robust passenger growth, although at a number of airports the impact of changes in airline routes and passenger flows seen in the second half of 2017 had continued into the first quarter, SSP said.
Like-for-like sales growth in the rest of the world continued to be “good”.

“Looking forward to the full year, our expectation for like-for-like sales growth for the group remains unchanged, at between 2%-3%,” SSP said.

Net contract gains were driven by significant contributions from North America and the rest of the world.

“Looking forward, after a good start in the first quarter, an encouraging pipeline of new contracts and the deferral of redevelopments at some of our airports, we now anticipate net contract gains for the group, including the impact of TFS, to be approximately 4% for the full year,” the company said.

“The new financial year has started well and the pipeline of new contracts is encouraging. Whilst a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets.”